The Zelira Therapeutics Ltd (ASX: ZLD) share price has exploded in the past two days.
This ASX medicinal cannabis share has risen 49% since market close on 11 July from $1.54 to the current price of $2.30. Since 6 July, the company's share price has more than doubled.
Zelira is a biopharmaceutical company developing and commercialising clinically validated cannabis medicines.
So what's going on?
What is happening at Zelira?
Investors appear to have reacted to positive news from the company. Today, the company reported it has achieved a major milestone.
Zelira has received German federal regulatory approval for its leading cannabinoid-based medicine, Zenivol.
The company's shares were placed in a trading halt yesterday pending the release of this news.
Zenivol is used to treat patients with chronic insomnia.
Now, Zelira will be able to market the product in Germany, said to be Europe's largest market for this type of medicine and one of the biggest in the world.
In September 2021, Zelira revealed it had entered an agreement with Adjupharm to commercialise Zenivol.
Commenting on today's news, Zelira managing director Dr Oludare Odumosu said:
The formal approval of Zenivol by BfArM in Germany marks a major milestone for our business.
Germany is one of the largest global markets for cannabinoid-based medicines, and also one of the highest quality global regulatory markets for pharmaceuticals.
We look forward to working with our Partner, Adjupharm in launching Zenivol® in Germany and supporting patients and physicians in treating chronic insomnia in a safe and effective
manner.
Share price snapshot
ASX medicinal cannabis share Zelira has lost nearly 74% in the past year and 60% in the year to date. However, in the past week Zelira shares have jumped 130%.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has lost nearly 10% in a year.
Zelira has a market capitalisation of about $22 million based on the current share price.
